The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

Victorian public service faces overhaul

A Victorian public service shake-up has been sold as a sign the state is open for business but critics argue it may jeopardise the environment and lead to job cuts.

From July, one department will be responsible for both the environment and agriculture, while planning and transport will also merge.

Coal allocations, small business, aviation and major projects will all be run out of the new Department of State Development, Business and Innovation.

Premier Denis Napthine said no jobs would go under the changes.

"These changes are important changes for Victorians; they're about creating a new emphasis on jobs (and) investment opportunities for Victoria," he said.

"This is about me putting my leadership, my direction, on where the public sector should go to better deliver services in Victoria to make sure we get that strong message that Victoria is open for business."

He could not put a price tag on the restructure, which the Community and Public Sector Union warned would cost thousands.

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"It's a scandalous waste of public money with thousands of workplaces across the state having to be re-badged while ministers and senior executives are protected," union Victorian secretary Karen Batt said.

Dr Napthine said merging the departments of environment and primary industries would deliver enormous benefits.

"This old-style debate between brown and green is a thing of the past," he said.

"I would have thought any sensible environmentalist would see this as a positive move."

Environment Victoria chief executive Kelly O'Shanassy said she agreed with Dr Napthine that it was possible to simultaneously grow jobs and protect the environment but that process had to be handled carefully.

"If it's done wrong, it's kind of like putting the fox in the hen house," she said.

Opposition frontbencher Jacinta Allan said she didn't believe Dr Napthine's assurance that no jobs would go as a result of the restructure.

"Victorians know they just can't trust a Liberal premier when it comes to protecting public service jobs," Ms Allan said.

She said the restructure was a demotion for Planning Minister Matthew Guy, who would be under Transport Minister Terry Mulder's supervision.

"(It's) purely to keep tabs on the movements of a key leadership rival for the premier," she said.

Aboriginal and veterans affairs will now come under the Department of Premier and Cabinet and the Department of Planning and Community Development will be abolished.